CBS COO Joseph Ianniello Offers More Background On CBS Radio Spinoff, Possible IPO
August 17, 2016 at 4:12 AM (PT)
CBS CORPORATION COO JOSEPH IANNIELLO told NOMURA’s 2016 Media, Telecom & Internet Conference TUESDAY (8/16) that the spinoff of CBS RADIO is "on track" for an IPO of less than 20% of the division "like we did with Outdoor" in first quarter 2017, with the split complete in third quarter.
The plan, IANNIELLO said, is to lever the property up to "high-yield" but "probably not" investment grade status. "Lesson learned from some other radio companies that are probably over-levered: we're not gonna do THAT, so I think a fair amount of leverage because it has a stable cash flow that can support that," IANNIELLO said. "We're unlocking value here... we've always been prudent, and we've always done the right thing for shareholders," he added, adding that the company is still investing in content and has "enough cash in the tank" to do so while still offering investors value.
On the prospect of a recombination of VIACOM and CBS, IANNIELLO said that the process, if it was to occur, would be "the same as (for) any other corporation," but he demurred on further analysis, saying that it has been a decade since the companies were together.